There wasn't a widespread technical recession in 2023 for major economies like the US or Australia, though many people felt economic hardship due to inflation and high interest rates; instead, many economists predicted a mild slowdown or "soft landing," with some forecasting a potential recession in 2024, but even then, it's expected to be relatively short (around a year) and mild, unlike the 2008 crisis, with the full recovery taking longer.
Although each recession has unique features, recessions often exhibit a number of common characteristics: They typically last about a year and often result in a significant output cost. In particular, a recession is usually associated with a decline of 2 percent in GDP.
A strong rise in unemployment — typically associated with a recession — is not foreseen. Key forecasts from the RBA out to December 2026 include: GDP growth of 1.7% (revised down from 2.1%). Unemployment rate of 4.4% (It's currently 4.3%).
Recession expectations remain subdued. Half (51%) of business leaders don't anticipate a recession in 2026. About one-quarter (27%) of respondents expect a recession or believe we're already experiencing one—down from 40% two years ago, but still higher than the 14% recorded at the beginning of 2025.
It can help reduce wealth inequality. Cash-rich households and savers. If people hold cash or low-risk assets, they can buy shares, property, or businesses at discounted prices. Recessions often push asset prices down, creating buying opportunities.
Gold. A good place to start with an overview of recession investments is with the yellow metal. Investors look to gold as a way of offsetting losses in the stock market. To gauge the performance of gold versus U.S. stocks, just look at the returns of exchange-traded funds (ETFs) that track each asset.
Renewable Energy Services. With a global push for sustainability and green energy, renewable energy services are expected to witness explosive growth. Solar panel installations, wind energy solutions, and energy storage technologies are in high demand as businesses and governments focus on reducing carbon emissions.
Whether to sell your Australian house now (late 2025) or wait for 2026 depends on your goals, but the market shows strong price growth continuing into 2026, driven by potential rate cuts and low stock in many areas, making it a good time for sellers, though increased listings might offer buyers more choice later in 2025, creating a window for some, but potentially making it tougher to buy your next home if prices surge further. Selling sooner capitalizes on current strong demand and low inventory, while waiting might see prices rise more, but you'll face a potentially pricier next purchase, especially if upgrading.
You just don't know it yet. Elon Musk believes the global economy is already in a recession, and things are about to get a lot worse. He has recently made moves to curb working from home at Tesla, and has announced plans to layoff 10% of Tesla's salaried employees.
Yes, Australians are facing significant financial struggles in 2025, with high cost of living, rising debt, and widespread financial insecurity, particularly impacting young people, renters, and lower-income families, leading many to feel worse off and struggle to meet basic expenses despite some economic indicators improving. Key issues include affordability of essentials (food, housing), increased use of Buy Now Pay Later (BNPL), and a general sentiment that financial health isn't improving, say reports from Monash University, SBS News, The Salvation Army Australia, The West Australian, Agile Market Intelligence, ASIC, The Guardian, Broker Daily, and Australian Broadcasting Corporation.
Cash is king during a recession. A recent study from Vanguard found that even a small emergency fund — just $2,000 — can boost financial wellbeing by more than 20%. That said, if you can save even more you should. Most experts (and I agree) recommend having three to six months' worth of expenses on hand.
However, the "First World" is generally thought of as the capitalist, industrial, wealthy, and developed countries. This definition includes the countries of North America and Western Europe, Japan, South Korea, Australia, and New Zealand.
Avoid becoming a co-signer on a loan, taking out an adjustable-rate mortgage (ARM), or taking on new debt. Don't quit your job if you aren't prepared for a long search for a new one. If you own your own business, consider postponing spending on capital improvements and taking on new debt until the recovery has begun.
From peak to trough, US gross domestic product fell by 4.3 percent, making this the deepest recession since World War II. It was also the longest, lasting eighteen months.
The Most Important Recession Indicators You Need to Watch Right Now:
Healthy large-cap stocks also tend to hold up relatively well during downturns. Investing in broad funds can help reduce recession risk through diversification. Bonds and dividend stocks can provide income to cushion investors against downturns.
Let's start with the obvious: both years are shaped by financial anxiety. In 2008, global GDP shrank significantly, and it took years for job markets to recover. In 2025, the IMF is cautiously optimistic, but companies are behaving like it's 2008's anxious cousin—cutting back just in case.
Using this free income calculator, the approximate income you need to buy a $500,000 home, assuming you need a $400,000 loan, is $77,000 gross per year, excluding superannuation.
The hardest months to sell a house are typically December and January due to holidays, travel, and financial caution, with some sources also pointing to mid-winter (June/July in the Southern Hemisphere, Dec/Jan in Northern Hemisphere) because of cold weather, fewer buyers, and dull property presentation. These times see less buyer activity as people focus on celebrations and finances, leading to fewer serious offers and longer listing times.
No, most Australian property experts predict house prices will continue to rise in 2026, though at a slower, more uneven pace than the strong growth seen in 2025, with forecasts generally in the 5-7% range nationally, driven by low supply, population growth, and lagged effects of interest rate cuts, but limited by affordability constraints and tighter credit. While some analysts foresee potential flat or slightly down markets in specific areas due to economic pressures, the consensus points to continued, albeit gentler, growth, with strong performance expected in more affordable capitals like Perth, Adelaide, and Brisbane.
Let's delve into ten of the top industries that are booming in 2024 and provide tips for entrepreneurs looking to venture into these fields.
Online and digital businesses
A recession-proof business is one that continues to generate consistent demand and revenue even during economic downturns. These businesses often offer essential goods or services, like healthcare, home repair, or affordable groceries, that people need no matter what's happening in the economy.